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QUESTION PERIOD — National Revenue

Taxes on Excess Payments

December 2, 2025


My question is for the Leader of the Government in the Senate. Leader, the Phoenix fiasco has been causing errors and injustices for years. However, according to the CBC, the government is trying to recover debts that fall outside the limitation period by having the Canada Revenue Agency withhold tax refunds, including those of retirees who no longer have access to their old pay information or proof of overpayments. The letters and testimony that have emerged suggest that the government is circumventing the limitation period. How can the government justify using the CRA’s Individual Refund Set-Off Program to withhold tax refunds in order to recover alleged overpayments from the Phoenix fiasco?

Hon. Pierre Moreau (Government Representative in the Senate) [ + ]

Senator Carignan, in your preamble, you said that the debts in question are outside the limitation period. The government can’t exceed the limitation period. That is a basic legal principle. Therefore, any claim made outside the limitation period would not be admissible. I don’t need to tell you this. I have no information that the government is attempting to exceed the limitation period or illegally recover money owed to it.

I see that you understand my concern. Will the government therefore order the immediate suspension of collection measures, particularly against retirees, until it can demonstrate, with supporting evidence, that these amounts are indeed due and legally collectible, instead of forcing vulnerable individuals to acknowledge, against their will, a debt that does not exist or that has expired due to the limitation period?

Senator Moreau [ + ]

Senator Carignan, you know that I can’t make a commitment on behalf of the government. However, I would like to reiterate that I have no information that the government is attempting, by any means whatsoever, to recover amounts outside the limitation period. If it does, anyone who is asked to pay could validly refuse to comply.

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